Staff Reporter
Apple Inc. (AAPL) plans to source the majority of its iPhones sold in the U.S. from India by the end of 2026, signaling a significant strategic shift amid rising tariffs and global supply chain challenges.
To achieve this goal, the company will need to approximately double its production capacity in India, according to sources familiar with the plans who requested anonymity. Apple currently sells over 60 million iPhones annually in the U.S.
This initiative reflects Apple’s ongoing transition, which began when strict COVID-19 lockdowns disrupted operations at its primary manufacturing facility. The shift has been further influenced by tariffs imposed during the Trump administration and ongoing U.S.-China tensions.
Apple representatives in India were not available for comment. The Financial Times reported that Apple is focused on sourcing all iPhones sold in the U.S. from India by 2026. Previous reports from Bloomberg News indicated that Apple is prioritizing its Indian supply chain for U.S. customers.
In the year ending March, Apple manufactured $22 billion worth of iPhones in India, an increase of nearly 60% from the previous year, according to Bloomberg. Currently, 20% of iPhones are produced in India, while China remains the largest manufacturing hub.
Most iPhones made in India are assembled at Foxconn Technology Group’s facility in southern India. Additionally, Tata Group’s electronics division, which acquired Wistron Corp.’s local operations and manages Pegatron Corp.’s activities in India, plays a crucial role in Apple’s supply chain.
In the fiscal year ending March 2025, Apple exported iPhones worth 1.5 trillion rupees ($17.5 billion) from India, as reported by the nation’s technology minister on April 8.
Following the announcement of reciprocal tariffs by Trump in February, shipments of iPhones from India to the U.S. increased significantly.
The Trump administration recently exempted electronics, including smartphones and computers, from these tariffs, meaning iPhones produced in India will not incur duties at this time. Despite this, the overall tariffs on China remain steep at 145%, likely prompting companies like Apple to expedite their supply chain transitions.
Apple now assembles its entire range of iPhones in India, including the premium titanium Pro models. The company’s manufacturing success in India is bolstered by state incentives aligned with Prime Minister Narendra Modi’s vision to establish the country as a manufacturing powerhouse.
